Andre Candess manages an office supply store.One product in the store is computer paper.Andre knows that 10,000 boxes will be sold this year at a constant rate throughout the year.There are 250 working days per year and the lead-time is 3 days.The cost of placing an order is $30,while the holding cost is $15 per box per year.If Andre orders 500 boxes each time he orders from his supplier,what would his total annual inventory cost be (holding cost plus ordering cost) ?
A) $3,000
B) $4,350
C) $3,075
D) $3,750
E) None of the above
Correct Answer:
Verified
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